Why should anyone bother to study perfect competition since it seldom or never exists in reality?
What will be an ideal response?
ANS:
Although it may never or seldom exist, it is a model of the market form that would result in greater output, lower prices, and less economic profit than exist under less competitive conditions. Thus, it is an ideal standard to which we can measure or compare less competitive market forms.
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One advantage of using an inflation tax over other methods of tax collection is that:
A) inflation tax only affects individuals with a high income. B) people who evade other taxes also feel the burden of an inflation tax. C) the revenue from inflation tax is extremely high. D) the collection of inflation tax is more organized.
Which of the following are ways to ration goods and services?
A) price B) physical force C) political power D) All of the above are correct.
An increase in net taxes (taxes paid by the private sector to the government less transfer payments and interest payments made by the government to the private sector) will:
A. decrease public saving. B. increase private saving. C. increase public saving. D. reduce investment in new capital equipment.
If the calculated value of the t statistic is greater than the critical value, the null hypothesis, H0 is rejected in favor of the alternative hypothesis, H1.
Answer the following statement true (T) or false (F)